Wednesday, July 13, 2005

Are we going to see a spending spree as the Murphy-ites flee? -- URA set to buy property on Fifth

URA set to buy property on Fifth The URA is proposing to pay $246,000 for a small four-story building at 212 Fifth owned by Candy-Rama Inc. It plans to pay $630,000 for a larger four-story building at 214-218 Fifth owned by Alfred B. Nunan next to G.C. Murphy's that currently houses three businesses, including a hat store that has been at the location for decades.
The acquisitions will add to the 15 properties the URA has purchased Downtown as part of Mayor Tom Murphy's effort to assemble land for the proposed redevelopment of the ragtag Fifth and Forbes retail corridor.

My view is NOT shared by that in the article. Herb Burger said that "anything the URA acquired Downtown is good new." Herb, my advice to you is, Think again!We are getting a new mayor at the first of the year.
This might be another golden opportunity for those who might want to be the next Pittsburgh mayor to say something in public -- or on the internet.

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The city's Urban Redevelopment Authority is poised to add to its portfolio of properties in the Fifth and Forbes corridor Downtown, including one building that houses the tiny Candy-Rama store near Market Square.

URA board members are expected to vote tomorrow to acquire two buildings on Fifth Avenue next to the old G.C. Murphy's store, which the agency currently owns.

The URA is proposing to pay $246,000 for a small four-story building at 212 Fifth owned by Candy-Rama Inc. It plans to pay $630,000 for a larger four-story building at 214-218 Fifth owned by Alfred B. Nunan next to G.C. Murphy's that currently houses three businesses, including a hat store that has been at the location for decades.

The acquisitions will add to the 15 properties the URA has purchased Downtown as part of Mayor Tom Murphy's effort to assemble land for the proposed redevelopment of the ragtag Fifth and Forbes retail corridor.

URA Executive Director Jerome Dettore said the owners of both Fifth Avenue properties approached the city about purchasing the buildings.

"This was an opportunity we felt we couldn't pass up. It enhances the value of the property we own," he said.

With the proposed purchases, the URA will own about half a block of Fifth Avenue, from the Murphy's store to McMasters Way, an alley that runs into Market Square.

The URA's control over so many properties Downtown has long been a source of controversy. The agency has been amassing properties believing that such an assemblage would make it easier to attract a developer to revitalize the Fifth and Forbes corridor.

But with redevelopment efforts seemingly at a standstill and the recent pull-out of Philadelphia developer Carl Dranoff, critics believe the approach could actually be hampering redevelopment. They argue that the URA should start selling off properties piecemeal to those interested in buying them.

However, Dettore believes the new purchases will help to make the G.C. Murphy's section of Fifth Avenue "more developable," not less.

URA attorney Joseph Gariti III said the agency would assume the leases of the stores operating in the two buildings and that they could remain in business.

Nonetheless, he and Dettore said Candy-Rama plans to move out of the building at 212 Fifth, leaving only one Downtown store remaining, on Liberty Avenue. Candy-Rama for many years also had a store at the corner of Fifth and Wood but has closed that one as well.

Employees at Candy-Rama said yesterday they had heard nothing about the owner's plans or the future of the store.

Two doors down, at Kenny's Nail Design, manager Ha Nguyen said he was unaware of the plans to sell the building.

"If they allow us to stay, we'll stay," he said.

Just where the purchases will fit into the latest effort to redevelop the Fifth and Forbes corridor remains to be seen.

The Pittsburgh Task Force, the private group spearheading the latest effort, is hoping to recruit another master developer to take a shot at the Fifth and Forbes corridor.

Herb Burger, the task force chairman, said yesterday that "anything the URA acquires Downtown is good news." He declined further comment.

The URA is willing to make its properties available to the task force for redevelopment. PNC Bank, which owns virtually the whole block of Fifth opposite G.C. Murphy's, also has expressed interest in working with the task force.

In addition, the Regional Industrial Development Corp. of Southwestern Pennsylvania is pursuing the purchase of the vacant Lazarus department store building Downtown on behalf of the task force with the hope of transferring it to a private developer.

An RIDC affiliate also has purchased the old Pizza Hut building at 430 Wood St. for the task force.

(Mark Belko can be reached at mbelko@post-gazette.com or 412-263-1262.)